The effectiveness of internal control in local government units

Abstract

There are many definitions of control, which shows its various functions, however the essence of control always remains one - the control is aimed at comparing the existing actual state of affairs with the desired state. All differences between these states should be detected by the controlling authority and the methods, guidelines being supposed to eliminate these shortcomings must be indicated in the recommendations and conclusions. It should be pointed out that each individual unit is aspiring to the realization of defined goals. These goals can be differently defined. They express themselves in the pursuit of full compliance actions with the law, ensuring that the data presented in financial statement are reliable, preventing the uncontrolled outflow of information from the unit. The effective internal control is helpful in achieving these goals. Aim-determining the meaning of the terms: internal control, management control and presenting the relationship between these concepts. Research methodology - direct questionnaire surveys (PAPI). The attempt was made to identify supporting factors and limit the effectiveness of internal control in local government units.